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minutes meeting date 2026-06-01 · fetched 2026-09-17 · 17327 characters · read by OCR, check numbers against the source · official file · plain text
CITY OF CITY OF POCATELLO, IDAHO CITY COUNCIL BUDGET DEVELOPMENT MEETING JUNE 1, 2026 AGENDAITEMNO. 1: ROLL CALL Mayor Mark Dahlquist called the City Council Budget Development meeting to order at 9:00 a.m. Council members present were Dakota Bates, Corey Mangum, Brent Nichols, Hayden Paulsen, Stacy Satterfield and Ann Swanson. AGENDA ITEM NO: 2: MAYOR & COUNCIL DEPARTMENT City Clerk Konni Kendell and Chief of Staff Anne Nichols presented the proposed Fiscal Year 2027 budget for the Mayor and Council Department. Ms. Kendell provided an overview of the department's responsibilities, explaining that the department provides administrative support to the Mayor, City Council, City departments, advisory boards and the public. She noted that the department is responsible for coordinating City Council meetings and official notices, maintaining public records, processing public records requests, preparing ordinances and resolutions, supporting advisory boards and committees, managing public communications and ensuring compliance with statutory and procedural requirements. Ms. Kendell highlighted the department's accomplishments during the previous fiscal year, including coordinating City Council meetings, processing official documents, responding to public records requests, preparing legislative documents, issuing media releases, maintaining official correspondence, processing cemetery deeds and administering the City's SeeClickFix citizen service request system. She discussed the department's emphasis on transparency, public accessibility and customer service. Ms. Kendell explained that the proposed Fiscal Year 2027 budget was developed with an emphasis on fiscal responsibility while maintaining high levels of service. Operational expenditures represent approximately ten percent of the department's budget, with personnel costs comprising the majority of expenditures due to the service-oriented nature of the department. Proposed operational expenses have decreased from the prior fiscal year as a result of completing the City's rebranding project and reduced election-related expenses. Ms. Nichols discussed succession planning efforts associated with an anticipated employee retirement and the importance of preserving institutional knowledge to ensure continuity of operations. Council members thanked staff for the presentation and acknowledged the department's significant administrative workload and continued commitment to supporting City operations. AGENDA ITEM NO. _ 3: LEGAL DEPARTMENT: City Attorney Jared Johnson and Risk Manager Andrea Henderson presented the Legal Department's organizational structure and proposed Fiscal Year 2027 budget. Mr. Johnson explained that the department's responsibilities are divided into three primary areas: providing in-house legal counsel to the Mayor, City Council and City departments; managing civil litigation and tort claims involving the City; and prosecuting misdemeanor and infraction cases in Municipal Court. Mr. Johnson reported that during Fiscal Year 2025 the department prosecuted approximately 1,345 misdemeanor cases, including 225 domestic battery cases, and handled 558 infractions. CITY COUNCIL BUDGET DEVELOPMENT MEETING 2 JUNE 1, 2026 He also noted that the department reviewed 611 contracts and legal agreements, representing a substantial increase in workload compared to prior years despite no increase in staffing. Ms. Henderson explained that the proposed budget remains largely flat, with personnel costs accounting for the majority of the increase. Council members discussed internal service charges and the budget development process. Chief Financial Officer Rich Morgan explained that internal service allocations represent costs charged by other City departments and that staff continues refining those allocations as implementation of the OpenGov budgeting system progresses. In response to a question from Council regarding attorney salaries, Mr. Johnson responded that starting salaries for City attorney positions have fallen below market rates due to increased compensation statewide for prosecutors and public defenders. Although the department is currently fully staffed, recruiting qualified attorneys could become difficult should vacancies occur. In response to a question from Council regarding expenditures for outside legal counsel, Mr. Johnson explained that specialized litigation occasionally requires outside legal expertise not available within the department. Ms. Henderson reported that approximately 106 tort claims were processed during Fiscal Year 2025. She explained that claims are evaluated through the Idaho Counties Risk Management Program (ICRMP), with only a limited number advancing to litigation. Mayor Dahlquist emphasized the importance of completing a comprehensive compensation study to address recruitment and retention challenges for professional positions. Council members expressed support for making the study a future organizational priority. AGENDAITEMNO. 4: RISK MANAGEMENT/WORKERS COMPENSATION: Andrea Henderson, Risk Manager, presented the proposed Fiscal Year 2027 Risk Management and Workers' Compensation budget. Ms. Henderson explained that Risk Management is a single- person division housed within the Legal Department and is responsible for administering workers' compensation claims, coordinating the City's commercial driver drug and alcohol testing program and managing the City's insurance programs. She reported that the department was unable to maintain a flat budget due primarily to increasing insurance premiums. Ms. Henderson reported that staff recently completed a comprehensive inventory and valuation of City-owned assets to ensure all facilities, infrastructure, vehicles and properties are properly insured. She stated that the review identified several assets that had previously been undervalued or omitted from insurance schedules, including water retention ponds and other City infrastructure. Updating those values resulted in higher insurance premiums but better protects the City's assets. Council members discussed the asset inventory process and insurance coverage. CITY COUNCIL BUDGET DEVELOPMENT MEETING 3 JUNE 1, 2026 Ms. Henderson explained that the updated inventory ensures City assets are insured at appropriate market values. Chantelle Macy, Budget Manager, explained that insurance costs are allocated to departments through interfund charges based upon historical claims experience and departmental risk exposure. AGENDA ITEM NO. _ 5: HUMAN RESOURCES DEPARTMENT: Jay Seedall, Human Resources Director, and Benefits Coordinator Holli Harnsberger presented the proposed Fiscal Year 2027 Human Resources budget. Mr. Seedall provided an overview of the department's responsibilities, including recruitment and hiring, employee classification and compensation, labor relations, workforce planning, benefits administration, employee development, organizational culture and support for approximately 600 full-time and 200 seasonal and variable-hour employees. Mr. Seedall reported that the department currently has one vacant position. He explained that a previously budgeted Human Resources Generalist position was reclassified to a Human Resources Assistant, creating operational savings while continuing to meet departmental needs. Council members discussed the need for a comprehensive compensation study. Mr. Seedall noted that the City's last compensation study was completed in 2014 and that significant changes in the labor market warrant a new evaluation. While Human Resources continues to perform internal market comparisons with peer agencies, both Mr. Seedall and Ms. Harnsberger recommended utilizing an outside consultant to conduct a comprehensive compensation analysis. Mr. Seedall indicated that the study remains on the City's priority project list but is not included in the proposed Fiscal Year 2027 budget. In response to Council comments regarding improvement to recruitment and onboarding technology, Mr. Seedall explained that while the City's current applicant tracking system functions effectively, additional automation opportunities remain. Ms. Harnsberger presented the Wellness Program budget. She explained that the City's wellness initiatives are intended to improve employee health, encourage preventive care and reduce long- term medical costs. Staff plans to utilize available wellness reserves during Fiscal Year 2027 rather than increasing interfund charges to departments. Ms. Harnsberger highlighted the continued success of the HealthJoy application, which provides employees with digital insurance cards, telehealth services, provider recommendations and other healthcare resources. Approximately 85 percent of eligible employees have downloaded the mobile app and staff reported measurable reductions in healthcare costs through increased utilization. Additional wellness initiatives include annual health fairs, on-site health screenings, educational programming, fitness challenges, nutrition initiatives and employee incentives designed to encourage healthy lifestyles. Council members discussed employee participation rates and the long-term value of wellness programs in reducing healthcare costs and improving employee health. Mr. Seedall reviewed the City's educational assistance program. He explained that tuition reimbursement is available for coursework that supports employee career advancement while CITY COUNCIL BUDGET DEVELOPMENT MEETING 5 JUNE 1, 2026 Mr. Howell indicated that while County assistance has been minimal since filling the Building Official position, the partnership remains available to help maintain customer service during peak construction periods. He acknowledged that additional plan review capacity would be beneficial but indicated that existing staffing levels remain sufficient at this time. Mr. Howell reviewed Building Department revenues and expenditures, noting that permit revenues continue to fully support departmental operations. AGENDAITEMNO. 7: INFORMATION TECHNOLOGY (IT) DEPARTMENT Aaron Lyon, Chief Information Officer, presented the proposed Fiscal Year 2027 Information Technology Department budget. Mr. Lyon provided an overview of the department's organization and responsibilities, noting that the department supports all City departments while operating with approximately one-third of the staffing typically found in similarly sized municipalities. In addition to maintaining the City's computer networks and technology infrastructure, the department provides website administration, audio and video production, live meeting streaming, cybersecurity, drone services and technical support for City departments. Mr. Lyon reported that approximately 43 percent of the department's budget consists of personnel costs, with the remaining expenditures dedicated primarily to software licensing, maintenance, hardware replacement and technology infrastructure. He noted that staff reduced operational expenditures to maintain a flat budget despite annual increases in software maintenance fees and rising computer hardware costs. In response to Council questions regarding the IT Department’s role in evaluating and implementing software purchases, Mr. Lyon explained that Information Technology now reviews software acquisitions to ensure compatibility with existing systems, maintain cybersecurity standards and maximize licensing efficiencies. Mayor Dahlquist emphasized the importance of improved coordination among departments when implementing new software systems. Council members discussed the department's vacant Cybersecurity Engineer position and explored opportunities to reorganize responsibilities or restructure positions to improve efficiency while maintaining appropriate cybersecurity protections. Mr. Lyon explained that recruitment efforts are underway and noted that cybersecurity responsibilities continue to expand as the City's technology infrastructure grows. He discussed the growing workload associated with supporting more than 800 computers, expanding cybersecurity requirements and increasing demands for technology services throughout all departments. Council members emphasized the importance of maintaining adequate cybersecurity staffing while continuing to evaluate organizational efficiencies as future vacancies occur. Mayor Dahlquist called a recess at 11:14 a.m. Mayor Dahlquist reconvened the meeting at 11:22 a.m. CITY COUNCIL BUDGET DEVELOPMENT MEETING 6 JUNE 1, 2026 AGENDA ITEM NO. 8: FINANCE DEPARTMENT Rich Morgan, Chief Financial Officer, presented the proposed Fiscal Year 2027 Finance Department budget. Mr. Morgan explained that the Finance Department is responsible for accounting, treasury management, budgeting, financial reporting, payroll, accounts payable, accounts receivable, audit coordination and long-range financial planning. Using the new OpenGov budgeting platform, he demonstrated how financial information will be presented to the public to improve transparency and accessibility. Mr. Morgan reviewed the department's organizational structure, explaining the distinct responsibilities of the Finance, Accounting, and Treasury divisions. He noted that the department currently has a controller vacancy following a recent resignation and discussed options for filling the vacancy. Mr. Morgan gave an overview of the responsibilities of the controller position, which includes preparation of financial statements, supervision of accounting functions, audit coordination and oversight of financial reporting. In response to a question from Council, Mr. Morgan indicated that staff would evaluate the costs and operational impacts before considering outsourcing or contracting the controller responsibilities. Council members discussed vacant positions within the department, internal controls and the importance of maintaining appropriate separation of financial duties. Mr. Morgan explained that certain accounting and treasury responsibilities cannot be combined due to auditing and internal control requirements. Council members expressed support for continued evaluation of organizational efficiencies while ensuring appropriate financial oversight is followed. AGENDA ITEM NO. __ 9: CAPITAL CONTINGENCY FUND 078 Rich Morgan, Chief Financial Officer, presented an overview of Capital Contingency Fund 078 and its role within the City's financial management practices. Mr. Morgan explained that Fund 078 serves as a reserve account for departmental savings and multi-year capital projects. Departments may request that unused funds be transferred into the account for specific future purposes, subject to Council approval before expenditures occur. Council members discussed various approaches for budgeting and managing reserve funds. They discussed how salary savings and departmental reserves are transferred into Fund 078 and whether future budgets should more clearly identify projects associated with those reserves. Mr. Morgan explained that while budgeting reserve funds in advance would provide departments immediate spending authority, requiring Council approval through budget amendments provides greater transparency and oversight. He explained that approximately $1.7 million is currently held within Fund 078 for projects previously identified by departments. Council Member Swanson emphasized the importance of providing greater visibility into reserve balances and planned expenditures during the budget process. CITY COUNCIL BUDGET DEVELOPMENT MEETING 7 JUNE 1, 2026 Council members discussed maintaining Fund 078 as a holding account for multi-year projects while improving transparency regarding intended uses of those funds. Mr. Morgan noted that maintaining reserves encourages responsible financial management and helps departments plan for major future purchases rather than adopting a "use it or lose it" budgeting approach. Mayor Dahlquist asked that additional information regarding departmental Fund 078 balances and planned expenditures be included in future budget presentations to improve Council oversight. AGENDA ITEM NO. 10: NON-DEPARTMENTAL Chief Financial Officer Rich Morgan presented the proposed Fiscal Year 2027 Non-Departmental budget. Mr. Morgan explained that the Non-Departmental budget includes expenditures that support multiple City departments or cannot be assigned to a single department, including City contributions required to match federal transit grants, centralized copy and mail services and appropriations for outside organizations. Mr. Morgan reported that requests from community organizations totaled approximately $195,000, while the proposed budget maintains funding at approximately $135,000, consistent with the previous fiscal year. Council members discussed the City's required local match for public transit grants and the accounting requirements that necessitate budgeting those expenditures within the Non- Departmental budget rather than individual departments. Mayor Dahlquist announced that the next Budget Development meeting would be June 2, 2026 at 9:00 a.m. AGENDA ITEM NO. 11: ADJOURN There being no further business, Mayor Dahlquist adjourned the meeting at 12:10 p.m. APPROVED: Wat. O MARK DAHLQUIST, (MAYOR ATTEST AND PREPARED BY:
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